Twitter is reportedly acquiring SoundCloud !
After reporting the YouTube’s plans of buying Twitch, the stage seems all set for yet another big news from the online content sharing world.
If sources at ReCode are to be believed, then Twitter might just acquire the Berlin-based online audio distribution platform SoundCloud. SoundCloud claims to have over 250 million users in its kitty and currently valued at $700 million. Both the parties(Twitter & SoundCloud) have declined to comment on the deal.
Often quoted as the startup that wants to be the YouTube for music files, SoundCloud had raised $60 million of funding earlier this year from Institutional Venture Partners, The Chernin Group and other investors.
Twitter lags behind distantly in terms of M&A and this deal will only be the second one in 2014 after the Gnip acquisition. Also, this deal will help Twitter forget the sore memories of failed attempt in the field of music. Twitter had launched stand-alone Twitter music app last year but had to shut it down in March this year. This way, this deal can also give Twitter a way to expand its reach independent of its core service.
Both the companies are already linked in certain ways. Earlier this year, a survey found that Twitter users share SoundCloud links in their messages more than any other music service. Moreover, one of Twitter’s earliest investors, Union Square Ventures has backed SoundCloud and Twitter board member Peter Chernin is also an investor in SoundCloud.
Twitter’s biggest acquisition till date remains $350 million deal with MoPub in 2013. Given SoundCloud’s valuation, the current size of deal is certainly going to be the biggest for twitter.
2014 is not even half way down and had already witnessed some of the historic M&A and humongous amount of funding as well. The way things are progressing in Indian startup ecosystem, it can very well join in the party soon.
Watch out this space for more updates and news.